Tenancy Agreements Malaysia, part 4

THIS is the final of a four-part series article intended as a simple guide to tenancy agreements for landlords who wish to rent. It covers tenancy agreements in Malaysia, what they are, why you need it as a landlord, the tenancy process, deposit amounts, and sample tenancy agreement as reference.

Special conditions

This final part defines what happens in the case of exceptions. We have added a side column to explain what each clause means in simpler terms.

Example:

Wording in the agreement

1. PROVIDED ALWAYS AND IT IS HEREBY EXPRESSLY AGREED BETWEEN BOTH PARTIES as follows:

1.1 If at any time the rent or any part thereof (whether formally demanded or not) shall remain unpaid or unsatisfied for seven days after becoming payable or if any of the tenant’s covenants shall not be performed or observed or if the tenant shall suffer execution on the demised premises or if the tenant shall become a bankrupt or being a company or corporation shall go into liquidation otherwise than for the purpose of amalgamation or reconstruction or if the tenant for the time being shall enter into any composition with the tenant’s creditors or suffer any distress or execution to be levied on the tenant’s goods then and in any of those events it shall be lawful for the landlord or any persons authorised by the landlord in that behalf at any time thereafter to reenter upon the demised premises or any part thereof in the name of the whole and thereupon this tenancy shall absolutely determine but without prejudice to any right of action or remedy of the landlord in respect of any breach of the tenant’s covenants herein contained.

Landlord can enter the property if tenant has not paid rent for more than seven days, or became bankrupt.

1.2 If the demised premises or any part thereof at any time during the term of tenancy be destroyed or damaged by any cause (other than the act or default of the tenant or any servant of the tenant or any person who is in the demised premises with his permission whether express or implied) so as to be unfit for occupation and use then the rent hereby reserved or a fair proportion thereof according to the nature and extent of the damage sustained shall be suspended until the demised premises shall again be rendered fit for habitation and use. If the demised premises shall not be rebuilt or reinstated by the landlord within one month after the event either the landlord or the tenant may at any time thereafter give to the other of them notice in writing to determine this tenancy and thereupon this agreement shall cease and be void as from the date of the occurrence of such damage or destruction but without prejudice to the rights and remedies of either party against the other in respect of any antecedent claim or breach of covenant or of the landlord in respect of the rent hereby reserved until such date.

If the property is damaged and unsafe (but it wasn’t the tenant’s fault), the tenant does not need to pay rent until the property is made safe again

1.3 Notwithstanding anything herein contained, the landlord shall not be liable to the tenant nor shall the tenant have any claim against the landlord in respect thereof:-

landlord is not liable if:

1.3.1 Any interruption in any of the common facilities used and enjoyed in conjunction with the demised premises occasioned by reason of necessary repair or maintenance of any installations or apparatus or damage thereto or destruction thereof by fire, water, act of god or cause beyond the control of the landlord or by reason of mechanical or other defect or breakdown or other inclement conditions or unavoidable shortage of electricity or water telephone service or labour disputes.

Common facilities are unavailable (e.g. gym or swimming pool under repair)

1.3.2 Any damage injury or loss arising out of the leakage of the piping, wiring and other systems in the demised premise.

Tenant is injured, or tenant’s property is damaged because of water leaks

1.3.3 Any damage or loss of the goods and chattels of the tenant as a result of theft, robbery or any other willful and destructive act committed by outsiders beyond the control of the landlord.

Tenant’s possessions are stolen from the property

1.4 In the event the tenant shall be desirous of taking a tenancy of the demised premises for a further term, the tenant shall give the landlord two-month written notice of the same. Provided always that the terms and conditions of this agreement shall have been duly observed and performed by the tenant, the landlord shall grant the tenant a further term of tenancy as is specified in Section 11 of the Schedule hereto upon the same terms and conditions (save and except for this clause) and at a rental to be agreed upon.

If tenant wants to renew their stay, they should inform the landlord at least two months in advance, but the rent may be renegotiated.

1.5 The tenant shall not terminate the tenancy at any time before the expiry of the said term hereby created. In the event the tenant terminating the tenancy at any time before the said term hereby created, the landlord reserved the rights to forfeit the said security deposit as is specified in Section 9 of the Schedule. In the event the landlord terminating the tenancy at any time before the expiry of the said term, the landlord shall refund the two-month security deposit to the tenant and pay a further two-month rental as compensation provided there is no breach of contract on the part of the tenant.

After the period of 12 months, the tenant shall be entitled to terminate this tenancy agreement after giving the landlord two-month written notice before the expiry of the term hereby created in the event of any of the following:

If the tenant moves out early, the landlord can keep the security deposit. If the landlord ends the tenancy early, landlord must return the security deposit plus compensate the tenant an additional two month’s rental. Tenant is allowed to end the tenancy early (without losing their security deposit) in the event of the conditions below:

1.5.1 the tenant being a natural person or the occupant (in the case of the tenant being a company) shall be required to obtain the issue or renewal under the Immigration Act 1959/63 and the regulations made thereunder of a work permit for the tenant’s or, as the case may be, the occupant’s continued employment in Malaysia but shall be unable to obtain such work permit or the renewal thereof; or Tenant (if foreigner) is unable to renew their work permit in Malaysia

1.5.2 the tenant being a natural person or the occupant (in the case of the tenant being a company) shall be transferred out of state or country, then the tenant shall be entitled, if the tenant shall have performed and observed the several stipulations contained in the tenancy agreement and on the tenant’s part to be performed and observed, to terminate the tenancy in the manner as follows:

(i) by giving to the landlord not less than two-month notice in writing of termination together with reasonable evidence in the case under subclause 6.5.1, of the refusal of the work permit or the renewal thereof or in the case under subclause 6.5.2, of the death or resignation of the tenant or occupant (in the case of tenant being a company) or in the case under sub-clause 6.5.3, of the transfer of the tenant; or

(ii) by paying to the landlord two-month rental in lieu of notice thereof.

Tenant gets transferred to another city or overseas 1.6 Without prejudice to clause 6.1, the tenant shall pay interest on demand to the landlord on any monies which are or become due and payable pursuant to the provisions of this agreement or due upon judgment to the landlord until such time as all outstanding moneys including interest shall have been paid in full. The rate of interest applicable shall be at the rate of 10 per cent per annum and such interest shall accrue and be calculated on a daily basis.

Landlord is allowed to charge the tenant 10 per cent interest per annum for any money owed 1.7 In the event the landlord shall be desirous of selling the demised premises prior to the expiration or the term hereby created, the landlord hereby covenants undertakes and agrees that such sale shall be subject to this tenancy and shall procure the purchaser to continue with the terms and conditions of this agreement in lieu of the landlord and the tenant hereby agrees to allow prospective purchasers at all reasonable times to enter upon and examine the demised premises upon reasonable notice given by the landlord.

If the landlord sells the property to someone else, the new owner must continue renting the property to the tenant under the existing terms. As long as tenant is given advanced notification, they must allow potential buyers to come in and inspect the property.

1.8 All costs and incidental to the preparation and completion of this agreement including stamp duty shall be borne by the tenant and it is further agreed that all costs and disbursements incurred by the landlord (including the landlord’s solicitors’ fees on a solicitor and client’s basis) in enforcing his rights hereunder in the event of any breach by the tenant hereof shall be borne by the tenant.

Likewise, it is also agreed that all costs and disbursements incurred by the tenant (including the tenant’s Solicitors’ fees on a solicitor and client’s basis) in enforcing his rights hereunder in the event of any breach by the landlord hereof shall be borne by the landlord.

Tenant agrees to pay stamp duty for this tenancy agreement. If tenant sues the landlord for breach of contract, landlord pays the legal fees. If landlord sues the tenant for breach of contract, tenant pays the legal fees.

1.9 Any notice in writing under the terms and conditions of this agreement to be sent to either party hereto on the other shall be by prepaid registered post and shall be deemed to be sufficiently served at the time when in the ordinary course of post would have been delivered.

Any correspondence regarding the terms of this agreement should be sent by registered mail

1.10 No relaxation or forbearance delay or indulgence by the landlord in enforcing any of the terms and conditions of this agreement nor the granting of any time by the landlord shall prejudice affect and/or restrict the rights and powers of the landlord hereunder.

Just because the landlord did not take action if the tenant breached the contract previously, doesn’t mean they can’t take action in the future.

1.11 The schedule hereto shall be taken read and construed as an essential part of this agreement.

This article is written for informational purposes only and does not constitute legal advice from Recommend.my. You should always look for professional help before entering into a legally binding agreement.

Special conditions of tenancy agreement
By NST PROPERTY – June 28, 2018 @ 11:45amTHIS is the final of a four-part series article intended as a simple guide to tenancy agreements for landlords who wish to rent. It covers tenancy agreements in Malaysia, what they are, why you need it as a landlord, the tenancy process, deposit amounts, and sample tenancy agreement as reference.
Special conditions
This final part defines what happens in the case of exceptions. We have added a side column to explain what each clause means in simpler terms.
Example:
Wording in the agreement
1. PROVIDED ALWAYS AND IT IS HEREBY EXPRESSLY AGREED BETWEEN BOTH PARTIES as follows:
1.1 If at any time the rent or any part thereof (whether formally demanded or not) shall remain unpaid or unsatisfied for seven days after becoming payable or if any of the tenant’s covenants shall not be performed or observed or if the tenant shall suffer execution on the demised premises or if the tenant shall become a bankrupt or being a company or corporation shall go into liquidation otherwise than for the purpose of amalgamation or reconstruction or if the tenant for the time being shall enter into any composition with the tenant’s creditors or suffer any distress or execution to be levied on the tenant’s goods then and in any of those events it shall be lawful for the landlord or any persons authorised by the landlord in that behalf at any time thereafter to reenter upon the demised premises or any part thereof in the name of the whole and thereupon this tenancy shall absolutely determine but without prejudice to any right of action or remedy of the landlord in respect of any breach of the tenant’s covenants herein contained.
Landlord can enter the property if tenant has not paid rent for more than seven days, or became bankrupt.
1.2 If the demised premises or any part thereof at any time during the term of tenancy be destroyed or damaged by any cause (other than the act or default of the tenant or any servant of the tenant or any person who is in the demised premises with his permission whether express or implied) so as to be unfit for occupation and use then the rent hereby reserved or a fair proportion thereof according to the nature and extent of the damage sustained shall be suspended until the demised premises shall again be rendered fit for habitation and use. If the demised premises shall not be rebuilt or reinstated by the landlord within one month after the event either the landlord or the tenant may at any time thereafter give to the other of them notice in writing to determine this tenancy and thereupon this agreement shall cease and be void as from the date of the occurrence of such damage or destruction but without prejudice to the rights and remedies of either party against the other in respect of any antecedent claim or breach of covenant or of the landlord in respect of the rent hereby reserved until such date.
If the property is damaged and unsafe (but it wasn’t the tenant’s fault), the tenant does not need to pay rent until the property is made safe again
1.3 Notwithstanding anything herein contained, the landlord shall not be liable to the tenant nor shall the tenant have any claim against the landlord in respect thereof:-
landlord is not liable if:
1.3.1 Any interruption in any of the common facilities used and enjoyed in conjunction with the demised premises occasioned by reason of necessary repair or maintenance of any installations or apparatus or damage thereto or destruction thereof by fire, water, act of god or cause beyond the control of the landlord or by reason of mechanical or other defect or breakdown or other inclement conditions or unavoidable shortage of electricity or water telephone service or labour disputes.
Common facilities are unavailable (e.g. gym or swimming pool under repair)
1.3.2 Any damage injury or loss arising out of the leakage of the piping, wiring and other systems in the demised premise.
Tenant is injured, or tenant’s property is damaged because of water leaks
1.3.3 Any damage or loss of the goods and chattels of the tenant as a result of theft, robbery or any other willful and destructive act committed by outsiders beyond the control of the landlord.
Tenant’s possessions are stolen from the property
1.4 In the event the tenant shall be desirous of taking a tenancy of the demised premises for a further term, the tenant shall give the landlord two-month written notice of the same. Provided always that the terms and conditions of this agreement shall have been duly observed and performed by the tenant, the landlord shall grant the tenant a further term of tenancy as is specified in Section 11 of the Schedule hereto upon the same terms and conditions (save and except for this clause) and at a rental to be agreed upon.
If tenant wants to renew their stay, they should inform the landlord at least two months in advance, but the rent may be renegotiated.
1.5 The tenant shall not terminate the tenancy at any time before the expiry of the said term hereby created. In the event the tenant terminating the tenancy at any time before the said term hereby created, the landlord reserved the rights to forfeit the said security deposit as is specified in Section 9 of the Schedule. In the event the landlord terminating the tenancy at any time before the expiry of the said term, the landlord shall refund the two-month security deposit to the tenant and pay a further two-month rental as compensation provided there is no breach of contract on the part of the tenant.
After the period of 12 months, the tenant shall be entitled to terminate this tenancy agreement after giving the landlord two-month written notice before the expiry of the term hereby created in the event of any of the following:
If the tenant moves out early, the landlord can keep the security deposit. If the landlord ends the tenancy early, landlord must return the security deposit plus compensate the tenant an additional two month’s rental. Tenant is allowed to end the tenancy early (without losing their security deposit) in the event of the conditions below:
1.5.1 the tenant being a natural person or the occupant (in the case of the tenant being a company) shall be required to obtain the issue or renewal under the Immigration Act 1959/63 and the regulations made thereunder of a work permit for the tenant’s or, as the case may be, the occupant’s continued employment in Malaysia but shall be unable to obtain such work permit or the renewal thereof; or Tenant (if foreigner) is unable to renew their work permit in Malaysia
1.5.2 the tenant being a natural person or the occupant (in the case of the tenant being a company) shall be transferred out of state or country, then the tenant shall be entitled, if the tenant shall have performed and observed the several stipulations contained in the tenancy agreement and on the tenant’s part to be performed and observed, to terminate the tenancy in the manner as follows:
(i) by giving to the landlord not less than two-month notice in writing of termination together with reasonable evidence in the case under subclause 6.5.1, of the refusal of the work permit or the renewal thereof or in the case under subclause 6.5.2, of the death or resignation of the tenant or occupant (in the case of tenant being a company) or in the case under sub-clause 6.5.3, of the transfer of the tenant; or
(ii) by paying to the landlord two-month rental in lieu of notice thereof.
Tenant gets transferred to another city or overseas 1.6 Without prejudice to clause 6.1, the tenant shall pay interest on demand to the landlord on any monies which are or become due and payable pursuant to the provisions of this agreement or due upon judgment to the landlord until such time as all outstanding moneys including interest shall have been paid in full. The rate of interest applicable shall be at the rate of 10 per cent per annum and such interest shall accrue and be calculated on a daily basis.
Landlord is allowed to charge the tenant 10 per cent interest per annum for any money owed 1.7 In the event the landlord shall be desirous of selling the demised premises prior to the expiration or the term hereby created, the landlord hereby covenants undertakes and agrees that such sale shall be subject to this tenancy and shall procure the purchaser to continue with the terms and conditions of this agreement in lieu of the landlord and the tenant hereby agrees to allow prospective purchasers at all reasonable times to enter upon and examine the demised premises upon reasonable notice given by the landlord.
If the landlord sells the property to someone else, the new owner must continue renting the property to the tenant under the existing terms. As long as tenant is given advanced notification, they must allow potential buyers to come in and inspect the property.
1.8 All costs and incidental to the preparation and completion of this agreement including stamp duty shall be borne by the tenant and it is further agreed that all costs and disbursements incurred by the landlord (including the landlord’s solicitors’ fees on a solicitor and client’s basis) in enforcing his rights hereunder in the event of any breach by the tenant hereof shall be borne by the tenant.
Likewise, it is also agreed that all costs and disbursements incurred by the tenant (including the tenant’s Solicitors’ fees on a solicitor and client’s basis) in enforcing his rights hereunder in the event of any breach by the landlord hereof shall be borne by the landlord.
Tenant agrees to pay stamp duty for this tenancy agreement. If tenant sues the landlord for breach of contract, landlord pays the legal fees. If landlord sues the tenant for breach of contract, tenant pays the legal fees.
1.9 Any notice in writing under the terms and conditions of this agreement to be sent to either party hereto on the other shall be by prepaid registered post and shall be deemed to be sufficiently served at the time when in the ordinary course of post would have been delivered.
Any correspondence regarding the terms of this agreement should be sent by registered mail
1.10 No relaxation or forbearance delay or indulgence by the landlord in enforcing any of the terms and conditions of this agreement nor the granting of any time by the landlord shall prejudice affect and/or restrict the rights and powers of the landlord hereunder.
Just because the landlord did not take action if the tenant breached the contract previously, doesn’t mean they can’t take action in the future.
1.11 The schedule hereto shall be taken read and construed as an essential part of this agreement.
This article is written for informational purposes only and does not constitute legal advice from Recommend.my. You should always look for professional help before entering into a legally binding agreement.